Tarisa Zahrotur Rimaya (1), Munawir Munawir (2)
General Background: Effective village fund management is vital for advancing rural development, especially through infrastructure enhancement that directly supports community welfare. Specific Background: Karangmulyo village exemplifies the central role of village governance in allocating and utilizing these funds to deliver essential infrastructure. Knowledge Gap: Despite significant fund allocations, comprehensive assessments of fund effectiveness and alignment with Islamic economic principles remain limited. Aim: This study aims to evaluate the effectiveness of village fund utilization for infrastructure development in Karangmulyo village and to analyze it from an Islamic economic perspective. Results: The findings reveal that 81% of the village fund was effectively utilized in infrastructure development, aligning with standards set by the Minister of Home Affairs Decree No. 690.900.327/1996. Communication among stakeholders and adherence to procedures were satisfactory, despite constraints such as limited human resources and budget.Novelty: This research uniquely integrates conventional performance metrics with Islamic economic principles—mutual assistance (ta’awun), benefit (maslahah), and justice (‘adl)—to assess infrastructure governance. Implications: The study contributes to policy discourse on optimizing village fund use, emphasizing both administrative accountability and Sharia compliance as foundations for sustainable rural development.
Highlights:
Measures fund effectiveness using government benchmarks.
Highlights barriers like limited resources and budget.
Integrates Islamic economic values in development assessment.
Keywords: Village Fund Management, Infrastructure Development, Islamic Economics, Rural Welfare, Sharia Compliance
M. Udjianto, A. Hakim, T. Domai, E. Suryadi, and R. Hayat, “The Impact of Village Fund Allocation on Community Welfare,” Journal of Village Development, vol. 5, no. 2, pp. 145–158, 2021.
N. Permatasari, R. Suryani, and H. Rahman, “Village Fund Management: Challenges and Opportunities,” International Journal of Community Development, vol. 7, no. 1, pp. 23–37, 2021.
M. Lili, “Pengelolaan Dana Desa: Antara Potensi dan Tantangan,” Jurnal Ekonomi Desa, vol. 6, no. 4, pp. 34–47, 2018.
L. Benny, I. Pramesti, and A. Wulandari, “Implementation of Village Fund Programs in Banyuwangi District,” Indonesian Journal of Public Policy, vol. 10, no. 2, pp. 115–127, 2023.
F. Katiman, “Evaluasi Pengelolaan Dana Desa di Kabupaten Banyuwangi,” Jurnal Administrasi Publik, vol. 12, no. 1, pp. 62–75, 2021.
F. Ahmad, T. Rosadi, and S. Susniwati, “Community Participation in Musrenbangdes: A Study in Karangmulyo Village,” Journal of Rural Development, vol. 14, no. 3, pp. 88–101, 2024.
R. Hasanah and M. Nasution, “Sharia Economic Principles in Village Fund Management: Case Study in Karangmulyo,” Journal of Islamic Economics, vol. 9, no. 2, pp. 134–150, 2025.
A. Edmans, “Sharia Economics: Ethics and Benefit in Village Development,” Islamic Economics Review, vol. 22, no. 4, pp. 155–168, 2023.
A. Mutezo and P. Mulopo, “Mutual Help and Justice in Sharia Economics,” Journal of Islamic Finance, vol. 11, no. 1, pp. 45–59, 2021.
F. Chiyemura, D. Gambino, and T. Zajontz, “Infrastructure Development in Rural Communities: A Case Study,” Infrastructure Development Review, vol. 6, no. 3, pp. 78–92, 2023.
N. G. Mankiw, Principles of Economics, 7th ed., Boston, MA: Cengage Learning, 2012.
M. B. Miles and A. M. Huberman, Qualitative Data Analysis: An Expanded Sourcebook, 2nd ed., Thousand Oaks, CA: Sage Publications, 1994.
M. Q. Patton, Qualitative Research and Evaluation Methods, 3rd ed., Thousand Oaks, CA: Sage Publications, 2002.
J. W. Creswell, Qualitative Inquiry & Research Design: Choosing Among Five Approaches, 4th ed., Thousand Oaks, CA: Sage Publications, 2013.
Village Government Official, “Interview with Village Government Official, Karangmulyo Village, Banyuwangi,” 2023.